1985 (2) TMI 286

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..... ent. 2. Briefly, the facts are that on 22nd April, 1975, the appellants were issued a show cause notice that they have contravened the Central Excise Rules inasmuch as they have removed 872.780 M.Ts. of re-rollable steel scrap of steel products such as end-cuts, short-length pieces and defectives falling under Central Excise Tariff Item 26AA on various dates in March, 1974, without payment of duty at appropriate rate, without giving correct description of goods in Excise documents and without including them in the classification lists. It is stated that they were incorrectly described as medium melting scraps under Tariff Item 26, which was then leviable to Basic Duty @ ₹ 100 per M.T. and Auxiliary Duty @ 75% of the basic duty wher .....

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..... by the appellants that the steel melting scrap, which they cleared from their plant, sometimes contained very small quantities of re-rollable scrap but it is stated that the percentage thereof was insignificant. Also, it is urged that in collection of scrap from all the shop floors, it becomes an impossible task to ensure that no such re-rollable scrap, even in small or insignificant quantities, finds its way to the melting scrap. However, it is emphasised that this admixture of certain negligible quantities of re-rollable scrap does not make the product classifiable under Tariff Item 26AA. 5. On behalf of the Respondents, it is urged that the appellants have not denied that the product in question was a mixure not only of steel melting .....

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..... again, there is no dispute from the Department side that it is essentially in the nature of steel melting scrap. The Department s case against the appellants rests on the allegation that the scrap contains an admixture of end-cuts, short length pieces and defectives, falling under Tariff Item No. 26AA. The question that arises for decision by us, therefore, is whether this admixture affects the essential character of the product. This naturally brings forth the question of quantum of such admixture. The appellants have all along maintained that this is too small to affect the essential character of the melting scrap cleared by them. Evidently, the Department also accepted this contention for a long time and only subsequently decided to rai .....

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